The MacDougal Post: Flash Crash Perp Busted

April 21, 2015

Flash Crash Perp Busted

The 2010 Flash Crash, some of our valued subscribers may recall, gave birth to this blog. A 600 point drop in the Dow Jones Industrial Average (the Dow) in five minutes indicated that human roles at the New York Stock Exchange (NYSE) had been supplanted by some automated system(s) that no longer offered the kind of protection investors had traditionally enjoyed from actual people who were there to toss out manipulative orders that would chop, say, 600 points off the Dow in 5 minutes if you accepted them.

Well, somebody has been fingered for it, apparently the whole 600 point thing, and the alleged Flash Crash perp has been arrested in the U.K., and our Department of Injustice has requested his extradition. Here's the coverage by 247wallst.com:

http://247wallst.com/investing/2015/04/21/did-one-overseas-futures-trader-overly-contribute-to-the-2010-flash-crash/

Maybe some day we'll be treated to more juicy details, but the summary material in the piece linked above is good enough for now. Just note that there is no mention of human roles on the NYSE. The perp got busted for placing the orders, but nobody faces charges for the real crime here, taking people out of the equation.

Inside the Scam

Short-sellers flood markets with bogus shares, involving buyers in bookkeeping transactions, not stock, and not telling them about it. Wall Street helps hide the fraud with Madoff accounting, even letting shorts pay dividends as part of this scam, duping investors into believing they get real dividends paid by the company they thought they invested in.

Worse, short-selling, in effect, adds these phony shares to the actual total number reported in company financial statements, which goes into the various earnings per share (EPS) calculations, essential components of the critical metric universally used to value common stocks, the price/earnings ratio (P/E). In a selling frenzy, EPS can be cut from, say, $4.00 to $0.40 or $0.04 or whatever, by the immense volume of fake shares these pretend investors are drubbing the real ones with at point of purchase.

Every reference made to P/E as a calculable metric is a lie. Our stock market is gamed by short-side racketeers, rendering equity investment in this country a massive securities fraud. Their humongous swindle purloins much of our savings during every market downdraft.

Odds are the SEC staff belongs in jail. Gangland racketeering is more than enabled by the complicity of our regulatory hotshots. Mob stooges inside that agency have spearheaded these cons for generations, flat out lying to us all those years.

Surely, the SEC's remarkable contention that short-sellers borrow their shares from you and me is, in its downright absurdity, the nadir of arrogance and criminal obfuscation.

That's why we're never asked to go along with it.

Site Exclusives

As our young readers know, any loser who steals mommy and daddy's savings is a stupid ninny.

Wall Street hires the biggest dumbbells in the world. That's because God hates stealers, and the nincompoops don't even know it.

Keep an eye on bad men like hedge fund managers, bank CEOs and proprietary traders right here in The MacDougal Post. Incorrigible dingbats like Mucus Poole-Knightly, Pockets MulGoon, and Lewie the Dip, just to name a few of the head cases found on the site, are contracted to appear here exclusively.

You won't find that kind of financial coverage anywhere else in cyberspace.

Check in with us regularly to find out what's really going on with your money, if there's any left. And when it's all gone, take a shower whenever you can and drop in on us from the local public library.

The MacDougal Post

Prize

April 21, 2015

Flash Crash Perp Busted

Did You Know?

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